In a world driven and defined by immorality, the truth is often obscured by propaganda. The boundaries between natural and artificial are blurred. The conscious becomes the unconscious.
To challenge the rationale is bold.
To explore the minefield is brave.
To unearth the truth - nothing better.
Ne ultra - nothing beyond.

Tuesday, 3 February 2009

The Democratic Alliance is calling for the immediate resignation of Khaya Ngqula, the chief executive of South African Airways.

Noting reports in the Sunday Times this weekend that Ngqula was under investigation after the airline had awarded a R3.5bn catering contract to one of his business partners, Manie van Dyk who speaks for the DA on public enterprises, said: "We have in the past repeatedly called for a forensic audit of SAA's affairs.

Now that the deaf ears of Minister Alec Erwin have been replaced by Brigitte Mabandla, we once again call on the new minister to conduct a full forensic audit on the finances of SAA at all levels of management."

Van Dyk lists a number of allegations against Ngqula which he ascribes to the chief executive's incompetence.

They include, he said, R1bn losses in four of the past six years; the retrenchment of 1 192 employees; the resignation of 53 pilots and 217 technicians; and the controversial retention bonuses paid out to select managers.

"Despite losing more than R16.6bn since 2002 (which has cost the taxpaying public more than R8.9bn in handouts) Mr Ngqula remains in his position and continues to receive retention bonuses despite being wholly ineligible for performance bonuses.

"His hubris extends to his consistent snubbing of parliament's oversight role. Despite fielding a further R1.9bn loss in 2008, Mr Ngqula and his management team were unable to find the time to report to the Portfolio Committee on Public Enterprises last year."

This is what South African Airways boss Khaya Ngqula told South Africans on national television when confronted about a monthly bonus of close to R70,000 that the airline is paying him to stay in his job.“Oh, that is not true. Gosh, I’d love to earn R70,000 a month. That’s definitely not true... it’s fantasy and wishful thinking,” he said.

But today Business Times can reveal that the SAA CEO lied about the staggering R68,750 monthly payment he received — in addition to his annual R5.3-million salary — to turn the ailing airline into a profitable parastatal.

Two weeks ago, in an interview on pay channel M-Net’s Carte Blanche programme, Ngqula disputed claims that he earned the bonus and said it was simply untrue. When pressed on the matter, Ngqula lashed out: “Bullshit... it’s rubbish.”

Ngqula is not the only SAA executive to receive fat monthly payments. Top executives and other “key” staff in on the scheme will cost the government an estimated R24-million a year until November 2010, when it expires.

This week Business Times established that the airline’s controversial retention bonus scheme is in full flight — and has already paid out the embattled airline’s managers R9-million since November last year when it was implemented.

Ngqula’s team of 17 executives has already raked in R3.9-million. The high-flying executive team’s monthly bonuses range from R68750 for Ngqula to R16,000 for lower-ranking staff. On Friday, the airline’s human resources general manager Bhabhalazi Bulunga, who incidentally scores R33,000 a month on top of his R1.6-million annual salary package, told Business Times that a total of 127 managers across the airline were getting extra rewards every month.

15 trips by helicopter to meetings in Gauteng within driving distance of each other, at a cost of R350,000.

The airline embarked on a massive cost-cutting programme that included slashing the coffee budget for staff at its head office in Kempton Park. Perks include a 745 BMW, a bodyguard and a personal chauffeur — that has cost taxpayers more than R500,000 in helicopter trips, the chartering of an airplane for a 30-minute flight between France and England. The airline signed a contract with a private company for executive travel Henley Air and said that R400,000 had been made available for this. Bell helicopters used for more than 15 journeys - Bell 206B JetRanger helicopters which is usually leased for around R4,350 an hour.

On February 28, Ngqula, who has a holiday home in the south of France, chartered a plane from Toulouse to London. SAA paid French company Dassault Falcon Service more than R100,000 for the brief journey and justified this as being in the “normal course of Ngqula’s duties between the two cities”

The flight would have cost R3288 on Air France if it had been booked via SAA in Johannesburg Ngqula had stayed at The Dorchester-Ngqula’s staff at Airways Park no longer drink top-brand coffee, he spent £1,550 on a two-night stay in March, including breakfast at over R400.